The
history of Lima, the capital of
Peru, began with its foundation by
Francisco Pizarro on January 18, 1535. The city was established on the valley of the
Rímac River in an area populated by the
Ichma polity. It became the capital of the
Viceroyalty of Peru and site of a
Real Audiencia in 1543. In the 17th century, the city prospered as the center of an extensive trade network despite damage from earthquakes and the threat of pirates. However, prosperity came to an end in the 18th century due to an economic downturn and the
Bourbon Reforms.